Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans receivable, net, by category at June 30, 2018 December 31, 2017: June 30, December 31, (in thousands) 2018 2017 Residential real estate $ 168,827 $ 158,020 Commercial real estate 260,119 261,783 Construction, land acquisition and development 23,340 20,981 Commercial and industrial 167,001 150,103 Consumer 179,088 134,653 State and political subdivisions 52,954 42,529 Total loans, gross 851,329 768,069 Unearned income (75 ) (80 ) Net deferred loan costs 4,137 2,654 Allowance for loan and lease losses (9,459 ) (9,034 ) Loans, net $ 845,932 $ 761,609 FNCB has granted loans, letters of credit and lines of credit to certain of its executive officers and directors as well as to certain of their related parties. For more information about related party transactions, refer to Note 7, FNCB originates one four three six June 30, 2018, one four $2.1 $5.0 three six June 30, 2018 $51 $100 $110 $135 2017. June 30, 2018 December 31, 2017, $629 $1.1 one four During the three six June 30, 2018, $0.8 $5.7 $71 $322 three six June 30, 2018, three six June 30, 2017, $0.6 $56 $108.5 June 30, 2018 $103.0 December 31, 2017. FNCB does not There were no six June 30, 2018. 2, 2017 10 Management evaluates the credit quality of the loan portfolio on an ongoing basis, and performs a formal review of the adequacy of the ALLL on a quarterly basis. This evaluation is inherently subjective, as it requires material estimates that may may may may The following table summarizes activity in the ALLL by loan category for the three six June 30, 2018 2017: Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Total Three months ended June 30, 2018: Allowance for loan losses: Beginning balance, April 1, 2018 $ 1,249 $ 3,342 $ 256 $ 2,505 $ 1,822 $ 388 $ 9,562 Charge-offs - (1,126 ) - (4 ) (180 ) - (1,310 ) Recoveries 121 2 - 75 129 - 327 Provisions (credits) (169 ) 889 (5 ) (121 ) 235 51 880 Ending balance, June 30, 2018 $ 1,201 $ 3,107 $ 251 $ 2,455 $ 2,006 $ 439 $ 9,459 Three months ended June 30, 2017: Allowance for loan losses: Beginning balance, April 1, 2017 $ 1,144 $ 3,501 $ 223 $ 1,679 $ 1,410 $ 349 $ 8,306 Charge-offs (31 ) (29 ) - (317 ) (88 ) - (465 ) Recoveries 11 1 - 110 85 - 207 Provisions (credits) 24 (451 ) 13 841 35 (41 ) 421 Ending balance, June 30, 2017 $ 1,148 $ 3,022 $ 236 $ 2,313 $ 1,442 $ 308 $ 8,469 Six months ended June 30, 2018: Allowance for loan losses: Beginning balance, January 1, 2018 $ 1,236 $ 3,499 $ 209 $ 2,340 $ 1,395 $ 355 $ 9,034 Charge-offs (63 ) (1,126 ) - (81 ) (440 ) - (1,710 ) Recoveries 127 3 30 147 228 - 535 Provisions (credits) (99 ) 731 12 49 823 84 1,600 Ending balance, June 30, 2018 $ 1,201 $ 3,107 $ 251 $ 2,455 $ 2,006 $ 439 $ 9,459 Six months ended June 30, 2017: Allowance for loan losses: Beginning balance, January 1, 2017 $ 1,171 $ 3,297 $ 268 $ 1,736 $ 1,457 $ 490 $ 8,419 Charge-offs (80 ) (29 ) - (347 ) (306 ) - (762 ) Recoveries 12 5 421 179 252 - 869 Provisions (credits) 45 (251 ) (453 ) 745 39 (182 ) (57 ) Ending balance, June 30, 2017 $ 1,148 $ 3,022 $ 236 $ 2,313 $ 1,442 $ 308 $ 8,469 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at June 30, 2018 December 31, 2017: Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Total June 30, 2018 Allowance for loan losses: Individually evaluated for impairment $ 8 $ 86 $ - $ 600 $ 2 $ - $ 696 Collectively evaluated for impairment 1,193 3,021 251 1,855 2,004 439 8,763 Total $ 1,201 $ 3,107 $ 251 $ 2,455 $ 2,006 $ 439 $ 9,459 Loans receivable: Individually evaluated for impairment $ 1,801 $ 8,464 $ 83 $ 793 $ 388 $ - $ 11,529 Collectively evaluated for impairment 167,026 251,655 23,257 166,208 178,700 52,954 839,800 Total $ 168,827 $ 260,119 $ 23,340 $ 167,001 $ 179,088 $ 52,954 $ 851,329 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ 33 $ 138 $ - $ 600 $ 2 $ - $ 773 Collectively evaluated for impairment 1,203 3,361 209 1,740 1,393 355 8,261 Total $ 1,236 $ 3,499 $ 209 $ 2,340 $ 1,395 $ 355 $ 9,034 Loans receivable: Individually evaluated for impairment $ 1,902 $ 8,164 $ 85 $ 795 $ 395 $ - $ 11,341 Collectively evaluated for impairment 156,118 253,619 20,896 149,308 134,258 42,529 756,728 Total $ 158,020 $ 261,783 $ 20,981 $ 150,103 $ 134,653 $ 42,529 $ 768,069 Credit Quality Indicators – Commercial Loans Management continuously monitors and evaluates the credit quality of FNCB’s commercial loans by regularly reviewing certain credit quality indicators. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of FNCB’s loan receivables. FNCB’s loan rating system assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial and industrial loans include commercial indirect auto loans which are not not 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass – Assets rated 1 5 no not Special Mention – Assets classified as special mention do not not Substandard – Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that FNCB will sustain some loss if the deficiencies are not Doubtful – Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that such weaknesses make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss – Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not Credit Quality Indicators – Other Loans Certain residential real estate loans, consumer loans, and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 The following tables present the recorded investment in loans receivable by loan category and credit quality indicator at June 30, 2018 December 31, 2017: Credit Quality Indicators June 30, 2018 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 34,346 $ 411 $ 134 $ - $ - $ 34,891 $ 133,602 $ 334 $ 133,936 $ 168,827 Commercial real estate 246,509 2,253 11,357 - - 260,119 - - - 260,119 Construction, land acquisition and development 20,990 324 575 - - 21,889 1,451 - 1,451 23,340 Commercial and industrial 157,690 649 2,353 - - 160,692 6,309 - 6,309 167,001 Consumer 2,040 35 - - - 2,075 176,724 289 177,013 179,088 State and political subdivisions 51,768 1,020 102 - - 52,890 64 - 64 52,954 Total $ 513,343 $ 4,692 $ 14,521 $ - $ - $ 532,556 $ 318,150 $ 623 $ 318,773 $ 851,329 Credit Quality Indicators December 31, 2017 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 27,186 $ 421 $ 62 $ - $ - $ 27,669 $ 129,887 $ 464 $ 130,351 $ 158,020 Commercial real estate 245,779 2,461 13,543 - - 261,783 - - - 261,783 Construction, land acquisition and development 18,280 330 6 - - 18,616 2,365 - 2,365 20,981 Commercial and industrial 142,019 479 1,597 - - 144,095 6,008 - 6,008 150,103 Consumer 1,731 - 34 - - 1,765 132,584 304 132,888 134,653 State and political subdivisions 42,040 - 396 - - 42,436 93 - 93 42,529 Total $ 477,035 $ 3,691 $ 15,638 $ - $ - $ 496,364 $ 270,937 $ 768 $ 271,705 $ 768,069 Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $3.5 $2.6 June 30, 2018 December 31, 2017, 90 six no may may 90 no 90 June 30, 2018 December 31, 2017. The following tables present the delinquency status of past due and non-accrual loans at June 30, 2018 December 31, 2017: June 30, 2018 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Residential real estate $ 167,523 $ 827 $ 20 $ - $ 168,370 Commercial real estate 258,268 - - - 258,268 Construction, land acquisition and development 23,257 - 83 - 23,340 Commercial and industrial 165,873 223 33 - 166,129 Consumer 177,430 1,104 265 - 178,799 State and political subdivisions 52,954 - - - 52,954 Total performing (accruing) loans 845,305 2,154 401 - 847,860 Non-accrual loans: Residential real estate 317 - - 140 457 Commercial real estate 1,126 - - 725 1,851 Construction, land aquisition and development - - - - - Commercial and industrial 750 - 83 39 872 Consumer 50 68 53 118 289 State and political subdivisions - - - - - Total non-accrual loans 2,243 68 136 1,022 3,469 Total loans receivable $ 847,548 $ 2,222 $ 537 $ 1,022 $ 851,329 December 31, 2017 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Residential real estate $ 156,701 $ 793 $ - $ - $ 157,494 Commercial real estate 260,276 70 473 - 260,819 Construction, land acquisition and development 20,954 27 - - 20,981 Commercial and industrial 149,046 185 88 - 149,319 Consumer 133,034 1,028 287 - 134,349 State and political subdivisions 42,529 - - - 42,529 Total peforming (accruing) loans 762,540 2,103 848 - 765,491 Non-accrual loans: Residential real estate 342 63 - 120 525 Commercial real estate - - - 964 964 Construction, land acquisition and development - - - - - Commercial and industrial 750 - - 35 785 Consumer 25 92 53 134 304 State and political subdivisions - - - - - Total non-accrual loans 1,117 155 53 1,253 2,578 Total loans receivable $ 763,657 $ 2,258 $ 901 $ 1,253 $ 768,069 The following tables present a distribution of the recorded investment, unpaid principal balance and the related allowance for FNCB’s impaired loans, which have been analyzed for impairment under ASC 310, June 30, 2018 December 31, 2017. $100 not not 450. $100 450 $0.7 June 30, 2018 $0.5 December 31, 2017. June 30, 2018 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no related allowance recorded: Residential real estate $ 205 $ 277 $ - Commercial real estate 6,160 7,023 - Construction, land acquisition and development 83 83 - Commercial and industrial 20 52 - Consumer 28 29 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 6,496 7,464 - With a related allowance recorded: Residential real estate 1,596 1,596 8 Commercial real estate 2,304 2,304 86 Construction, land acquisition and development - - - Commercial and industrial 773 773 600 Consumer 360 360 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,033 5,033 696 Total impaired loans: Residential real estate 1,801 1,873 8 Commercial real estate 8,464 9,327 86 Construction, land acquisition and development 83 83 - Commercial and industrial 793 825 600 Consumer 388 389 2 State and political subdivisions - - - Total impaired loans $ 11,529 $ 12,497 $ 696 December 31, 2017 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no related allowance recorded: Residential real estate $ 190 $ 216 $ - Commercial real estate 5,174 5,295 - Construction, land acquisition and development 85 85 - Commercial and industrial 21 53 - Consumer 30 30 - State and political subdivisions - - - Total impaired loans with no related allowance recorded 5,500 5,679 - With a related allowance recorded: Residential real estate 1,712 1,751 33 Commercial real estate 2,990 2,990 138 Construction, land acquisition and development - - - Commercial and industrial 774 774 600 Consumer 365 365 2 State and political subdivisions - - - Total impaired loans with a related allowance recorded 5,841 5,880 773 Total impaired loans: Residential real estate 1,902 1,967 33 Commercial real estate 8,164 8,285 138 Construction, land acquisition and development 85 85 - Commercial and industrial 795 827 600 Consumer 395 395 2 State and political subdivisions - - - Total impaired loans $ 11,341 $ 11,559 $ 773 The following table presents the average balance of, and interest income recognized on, impaired loans summarized by loan category for the three six June 30, 2018 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Residential real estate $ 1,805 $ 21 $ 1,841 $ 21 $ 1,837 $ 42 $ 1,884 $ 42 Commercial real estate 7,826 75 7,452 72 7,833 152 6,133 112 Construction, land acquisition and development 84 1 87 1 84 2 123 2 Commercial and industrial 794 1 1,059 9 794 1 879 14 Consumer 389 3 295 3 391 7 296 6 State and political subdivisions - - - - - - - - Total impaired loans $ 10,898 $ 101 $ 10,734 $ 106 $ 10,939 $ 204 $ 9,315 $ 176 ( 1 The additional interest income that would have been earned on non-accrual and restructured loans had these loans performed in accordance with their original terms approximated $45 $85 three six June 30, 2018, $39 $66 three six June 30, 2017, Troubled Debt Restructured Loans TDRs at June 30, 2018 December 31, 2017 $9.6 $10.2 $8.7 $0.9 June 30, 2018, $9.3 $0.9 December 31, 2017. $696 $750 June 30, 2018, December 31, 2017, not June 30, 2018. The modification of the terms of such loans may one There were no three six June 30, 2018. three six June 30, 2017. Three Months Ended June 30, 2017 Pre-Modification Outstanding Recorded Investment by Type of Modification Post-Modification (in thousands) Number of Contracts Forebearance Extension of Term Extension of Term and Forebearance Total Outstanding Recorded Investment Troubled debt restructurings: Residential real estate 1 $ - $ 63 $ - $ 63 $ 63 Commercial real estate 7 1,228 - - 1,228 1,228 Construction, land acquisition and development - - - - - - Commercial and industrial 3 1,125 - 25 1,150 1,150 Consumer - - - - - - States and political subdivisions - - - - - - Total new troubled debt restructurings 11 $ 2,353 $ 63 $ 25 $ 2,441 $ 2,441 Six Months Ended June 30, 2017 Pre-Modification Outstanding Recorded Investment by Type of Modification Post-Modification (in thousands) Number of Contracts Forebearance Extension of Term Extension of Term and Forebearance Total Outstanding Recorded Investment Troubled debt restructurings: Residential real estate 1 $ - $ 63 $ - $ 63 $ 63 Commercial real estate 8 5,250 - - 5,250 5,250 Construction, land acquisition and development - - - - - - Commercial and industrial 4 1,820 - 25 1,845 1,845 Consumer - - - - - - States and political subdivisions - - - - - - Total new troubled debt restructurings 13 $ 7,070 $ 63 $ 25 $ 7,158 $ 7,158 There were six six June 30, 2017, thirteen three eight $5.3 two four $1.8 six June 30, 2017. one $63 one $4.0 seven two $1.2 four $0.3 three $1.8 one There were no 12 90 three six June 30, 2018. one $10 12 six June 30, 2017. Residential Real Estate Loan Foreclosures There were three no June 30, 2018. three six June 30, 2018, no one $63 June 30, 2018. There were two $89 June 30, 2017. one $80 three June 30, 2017. six June 30, 2017, two $125 two six June 30, 2017, one $45 four $166 June 30, 2017. |